Finding the right car insurance policy can be a very daunting task. However, getting a car insurance policy can be one way to prevent and cut down surprising expenses that can add up to your elevated gas prices and other operating cost.
If you own a car, getting an insurance is a must for your protection. In obtaining insurance, it is important that you will look closely on the terms of the policy so that you’re assured that what you’ll get is the right insurance that can cater to your needs. Don’t just buy a car and pick an insurer without looking closely at the terms and conditions of the insurance so you’re sure that you are not just giving your money away.
How can you find the right insurance policy? Read on and remember these tips:
- Check the rates of different insurance companies annually. Like in making major purchases, canvassing for the rates from different insurance companies is a wise move than you can make in order to get the best deal. You can always check online the services that these companies offer as well as their rates. You can also find insurance comparison tools online to find a better deal.
- Choose your insurer wisely. Pick a top rated insurer or an insurer which you can trust. In choosing your insurer, you can always look up for reviews and ratings so as to gauge their trustworthiness or efficiency. Other points that you must consider when choosing an insurer also includes their ability to deal with claims, payments and non-claim problems.
- See to it that you always have a good credit score. Remember that not having a good credit standing can affect your premiums.
- Lay down the right deductible. The right deductible greatly affects your premiums as the two are inversely proportional to each other. Thus if you have a high deductible, you’ll have a low premium and vice versa. But you can also risk asking for a higher premium if you haven’t been in a car accident or if you have been a good and a law abiding driver ever since. This is because, the higher the premium, the higher would also be your percent savings.
- Check your coverage. Don’t sign your insurance contract without checking and reviewing your insurance coverage. Your coverage must be all encompassing of your needs. Remember that minimal coverage can give you only minimum protection, but a maximal coverage can give you a maximum protection.
- Update your insurer in case of reduced mileage. Car insurance companies will often let you reduce your premium if you’ll have a reduced mileage. So in case you change your address or job resulting to a reduced mileage, call your insurer.
- Look out for crash repairs. Remember to also ask your insurer about crash repairs. Will they send your car for repairs? Who will choose the repair shop? Will the repair shop use parts that are original equipment from the manufacturer (OEM) or not? These are just some of the questions that you must consider. Knowing the answers to these questions are important as you are entitled also to a good and reputable repair shop. This is because non-reputable repair shops likely use cheaper none OEM parts which haven’t passed the federal standards as they tend to be more prone to rust and fit poorly.
- Choose your car wisely. The right insurance policy also needs to fit with the right car. One of the things that is greatly considered by insurers other than your ability to pay is the car that you have. The damage sustained by your car as well as the cost for its repair also plays a big part in the price of your insurance. So when you’re thinking of buying a new car, it’s advisable to also look into the data on collision per vehicle model. You can check this online at the Insurance Institute for Highway Safety or IIHS (hldi.org/research/hldi/composite_intro.html). You can also obtain this data from your car dealer’s booklet on relative collision insurance cost by the National Highway Traffic Safety Administration or NHTSA. Also available online are estimated insurance fees for all new car models as provided by Consumer Reports.
- Watch out for scams. Felons with their stage accidents that rip off drivers are abundant nowadays. So beware of these scammers as their stage accidents may result in a car insurance claim against you even if you have always been a careful driver. To counter this, you can put your iPad in your dashboard to take videos while driving. Then when in an accident or a crash, you can take a photograph of the scene before reporting it to the police so that you’ll always have your evidence ready at hand.
- Look out for discounts and take advantage of them. When discounts are given especially to those drivers who have a good driving record, is older or married and therefore considered to be lower risk, take advantage of them. Other factors that will also help you get discounts and lower your cost is taking up a driver training course, installing anti-theft equipments and putting safety gears in your car to prevent and lower the risks. You can also combine different policies like home and car insurance if the combined policies will result in a much lower cost.